The Currency Report
Large Currency Speculators added to new recent long net positions in Japanese Yen, while remaining net short of commodity currencies including Australian and Canadian dollar, latest CFTC data shows…
(Commitments of Traders Data)
CFTC data released Friday January 15, 2016 shows large currency speculators increased long Yen positions by over 500%, building on last week’s reversal to net long. This week’s data also showed a 51% decrease in net short positions in the Canadian dollar, which may be indicative of profit taking ahead of this week’s BOC Jan 20 meeting.
This week’s sharp rise in net long Yen positions highlights one of the main goals of this report; which is to keep an eye on what large speculators are doing over the longer term with their positions, with the assumption that they large speculators are positioning in the direction of the longer term trend.
The existing net short positions in commodity currencies like the Australian and Canadian dollar suggest the weakness in the commodity sector will continue over the near term in my opinion.
The most recent Commitments of Traders data shows some significant percentage changes in non-commercial futures only net positions from the prior week including the following:
A sharp 51.72% decrease from 60,130 to 29,032 contracts net short of the Canadian dollar, which represents 18.70% of open interest;
A small 8.18% decrease from 3,620 to 3,324 contracts net long of the Swiss Franc, which represents 0.64% of open interest;
A miniscule 0.08% increase from 30,496 to 30,521 contracts net short of the British Pound, which represents 0.001% of open interest;
A substantial 510.92% increase from 4,103 to 25,066 contracts of the Japanese Yen, which represents 8.69% of open interest;
A trimming 7.69% decrease from 158,643 to 146,451 contracts net short of the Euro, which represents 3.06% of open interest;
A notable 67.45% increase from 13,761 to 23,043 contracts net short of the Australian Dollar, which represents 7.63% of open interest;
A healthy 4.94% increase from 40,707 to 42,719 contracts net long of the US Dollar Index, which represents 2.72% of open interest;
For those interested in Stock Index Futures, it may be of interest that over the same period large speculators increased their net short positions in E-Mini S&P 500 Stock Index by a massive 59.61% from 104,171 to 162,272 contracts. Feel free to contact me directly for more specific information.
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